For the purpose of organising education and training, the Ministry of Education grants the permission to education providers, determining the sectors of education in which they are allowed to organise education and their total student numbers. The education providers determine which vocational qualifications and which study programmes within the sectors of education will be organised at their vocational institutions.

The education providers are mostly municipalities or federations of municipalities. The State provides special needs education in five institutions and runs the Educational Centre of the Saami Area in Lapland (Saamelaisalueen koulutuskeskus).

The majority of vocational institutions (usually VET institutions) are maintained by local authorities, joint municipal authorities and the state. 39.5% are maintained by private organisations but only 20% of students study in institutions maintained by private organisations. Funding criteria are uniform irrespective of ownership

Apprenticeship training

All upper secondary level vocational qualifications available at educational institutions may also be obtained through apprenticeship training. As the apprenticeship training is based on a working contract, the practical training periods take place at the workplace in connection with ordinary work assignments. This is complemented by theoretical studies, which may be arranged at institutions providing vocational education and training, at vocational adult education centres, or at other educational institutions, where necessary.

Read more about Apprenticeship training

Competence-based qualifications

In addition, it is possible to complete further vocational qualifications and specialist vocational qualifications in accordance with the Vocational Adult Education Act (631/1998). A range of institutions are involved in the implementation of demonstrations of vocational skills within the system of competence-based qualifications.

Read more about Competence-based qualifications

Financing

Providers of vocational education and training receive statutory government transfer for operating costs on the basis of calculatory unit price. The unit prices are scaled per provider, allowing for the cost differences between various fields of education. The most significant factor influencing the amount of government transfer is the student quantity. Furthermore, there are discretionary increases. In addition, factors such as the educational task and provision of special needs education are taken into account separately for each institution.

The statutory government transfer is calculated to cover 42% of operating costs, payable to the education provider, and not earmarked for a particular purpose. The rest remains with the education provider to be covered.

Since 2002, a performance-based funding system of vocational education has gradually been taken into use alongside the calculatory funding. The idea behind performance-based funding is to encourage vocational education providers to promote the employment prospects and further education opportunities of the students, as well as increase the completion rate of qualifications, i.e. decreasing the number of dropouts.

In 2006, the performance-based funding system expanded and is now a part of the basis to determine the unit price. The allocation of performance-based funding is based on the performance-based funding index, which is combined from the following indicators:

• Effectiveness (job placement and further studies);
• Processes (dropping out, % ratio of qualification certifications holders to entrants);
• Staff (formal teaching qualifications and staff development).

Statistics

According to Statistics Finland, there was a total of 126 100 students in the curriculum-based upper secondary vocational education and training in 2007. Then number of new entrants was 48 500, which was one per cent less than year before. 54 per cent of the students were male.

42 per cent of the students studied in the sector of Technology, communication and transport; 14 per cent in Social services, health and sport; and 13 per cent in Tourism, catering and domestic services.

32 100 students accomplished their qualifications in the curriculum-based upper secondary vocational education and training in 2007. This is 3 per cent more than the year before. 52 per cent of the graduates were male.

39 per cent of the qualifications were accomplished in the sector of Technology, communication and transport; 15 per cent in Social services, health and sport; 13 per cent in Tourism, catering and domestic services and 10 per cent in Social science, business and administration.

Numbers of new entrants, students and qualifications in vocational upper secondary education and training (initial), both curriculum based and those in training preparing for competence-based vocational qualifications, years 2003–2007

Source: Statistics Finland

Private provision

Private vocational institutions operating under the Vocational Education and Training Act are steered by the Ministry of Education, receive government subsidies and have the right to award official qualification certificates.

Other private educational institutions do not have the right to award qualification certificates. In Finland there are, however, a number of private educational institutions, e.g. in the service sector. They do not receive public funding even if they fall under the supervision of the consumer authorities.